It’s no secret that Meridian Idaho homes are in short supply vs. strong demand these days.
That listing inventory imbalance is leading to sight-unseen offers in some instances.
I recently ran across an article claiming that one-third of all offers to buy homes are made sight-unseen.
The article was based upon a recent survey from a Seattle-based real estate company that doesn’t serve the Boise real estate market.
Thus, the following may have absolutely nothing to do with the Meridian Idaho real estate market.
But, I still found the article interesting.
The article claims that 33% of the company’s buyers were comfortable making an offer to purchase a home they had never physically seen.
Personally, I find it very hard to believe that one-third of Meridian Idaho home buyers are making offers without having viewed the homes first.
According to the article, Millennials were most likely to make a sight-unseen offer because they tend to use more technology to research properties before making an offer.
According to the article, 41% of Millennials had made at least one offer without having physically viewed the subject property.
In stark contrast, only 30% of Gen-Xers, and only 12% of Baby Boomers, made sight-unseen offers.
There are obvious risks involved for both buyers and sellers with sight-unseen offers.
No matter how much online research a buyer does, a computer can’t detect the fragrant odor of cat pee in the carpets and walls.
And, the computer won’t know about the drag strip that’s planned to be built on the undeveloped property behind the house.
There’s also risk for sellers who accept those sight-unseen offers.
There is no language in our RE-21 Purchase and Sale Agreement that discloses whether, or not, the buyer has physically viewed the property prior to making an offer.
But, there is language in our RE-10 Inspection Contingency Notice that allows a buyer to withdraw from the transaction and get their earnest money back if they don’t like inspection results.
That can allow a buyer to tie up a property with essentially refundable earnest money, look at the property during the inspection period, and walk away from the deal if they don’t like what they see.
If you’re a buyer, view the property before making an offer.
If you’re a seller, determine if the buyer has seen the property before accepting an offer.
During his 45 years of full-time real estate experience, Phil has helped thousands of past clients buy and sell quality properties in the Western U.S.
Phil is one of only ten local Realtors® (of nearly 5,500) honored with the coveted “Realtor® Emeritus” award from the National Association of Realtors®, recognizing 40 years in real estate.